FMC CORP Q3 FY2024 earnings call

• Strong third quarter performance with 9% sales growth and 15% adjusted EBITDA growth. - Latin America faced challenges but still delivered growth; North America was stronger than expected. - New products like fluindapyr-based fungicide and Isoflex active herbicide are key growth drivers. - Accelerating cost savings with targets of $125M to $150M in 2024 and over $225M gross run rate in 2025. - Confirming full-year guidance adjusted for the sale of Global Specialty Solutions business.

North America: Sales increased 48% due to strong volume growth, with insecticides driving higher sales from diamide products and branded products. Latin America: Sales grew 8% (15% excluding currency), volume growth in Brazil offset lower pricing and FX headwinds; new products like fluindapyr-based fungicide were key. Asia: Sales declined 10% mostly due to lower sales in India; destocking in channel making progress. NEA: Sales declined 7% due to lower volume from registration losses; branded diamides showed strong growth.

• Fourth quarter sales growth expected at 19% midpoint. - Adjusted EBITDA expected to grow 32% midpoint in Q4. - Full-year 2025 revenue growth around 6%, cost favorability towards higher end of $150M to $200M.

• Challenges in Latin America due to delayed rains, increased borrowing rates, and bankruptcy of a large customer. - Channel inventory issues in India and Asia affecting market recovery. - Pricing pressure due to competitive market conditions in Latin America and Asia.

Q: Joel Jackson asked about 2025 outlook A: Pierre Brondeau provided update on 2025 growth, cost favorability Q: Aleksey Yefremov asked about Latin America's Q3 performance A: Pierre Brondeau discussed reasons for Q3 challenges in Latin America Q: Kevin McCarthy asked about forward price trajectory A: Pierre Brondeau talked about pricing correlation with market state and diamide pricing Q: Steve Byrne asked about North America volume gain split A: Pierre Brondeau explained split of growth to diamide partners and selling to wholesalers Q: Laurent Favre asked about R&D cost reduction A: Pierre Brondeau discussed sustainable cost savings in R&D Q: Josh Spector asked about volumes and diamide sell in North America A: Pierre Brondeau and Ronaldo Pereira addressed volume guidance and diamide business in 2025 Q: Chris Parkinson asked about new product introductions and registration losses A: Pierre Brondeau and Ronaldo Pereira talked about new product cadence and impact of registration losses Q: Vincent Andrews asked about fourth quarter costs and orders A: Pierre Brondeau and Andrew Sandifer discussed savings and order status in Q4 Q: Jeff Zekauskas asked about diamide business in China A: Pierre Brondeau and Ronaldo Pereira commented on diamide pricing and market in China Q: Laurence Alexander asked about production capacity and distribution channel A: Pierre Brondeau addressed production capacity and raw material supply Q: Patrick Cunningham asked about pricing challenges in Latin America A: Pierre Brondeau and Ronaldo Pereira discussed pricing incentives and market share in Latin America